Companies often ask us if an actuarial valuation mandatory for leave schemes. It is clear that accounting and audit professionals require some additional guidance on this matter. In this post, we aim at addressing this issue. The short answer is, an actuarial valuation will be applicable if your company offers leave benefits that would require […]
With the rise in start-ups in India, we are observing an increasing trend in share-based remuneration schemes to the employees, the most popular ones being ESOP and SAR. However, we have observed a gap amongst professionals and company personnel, in the knowledge of the different types of schemes and their accounting treatment. As such, in this […]
All kinds of businesses, in whatever form and size, have expressed a desire to understand the regulatory framework under which actuarial valuations are performed. This is especially true for the most common benefit in India – the gratuity scheme. This blog explains the applicability of actuarial valuation of gratuity under different instances. But before diving into the […]
In the ever-evolving landscape of financial reporting standards, staying abreast of the latest changes is essential for professionals in the insurance industry. One such significant development is the International Financial Reporting Standard 17 (IFRS 17), which brings about a fundamental shift in how insurance contracts are accounted for. For actuaries and insurance professionals, understanding IFRS […]
The adoption and implementation of IFRS in the Kingdom of Saudi Arabia (KSA) is a major step towards increasing the transparency and comparability of the financial statements of the companies doing business in the Kingdom. We receive a lot of queries from such companies regarding the impact of this change and the need for actuarial […]
Ind AS 102 will bring much needed uniformity in valuation and accounting of share-based benefits. However, the cost for the affected companies is likely to increase significantly. What Ind AS 102 is all about? Ind AS 102 prescribes financial reporting in respect of share-based benefits and is relevant for companies which remunerate their employees by share-based (or stock option) […]
With the arrival of Ind AS, companies need to value and account for their stock option schemes using the fair value method. There are more ways in which Ind AS will affect companies running employee stock option schemes. These are described in more detail here. This post only focusses on methods to carry out fair […]